1st Edition

China's Monetary Policy Targets and Transition

By Fan Conglai Copyright 2025
    284 Pages 38 B/W Illustrations
    by Routledge

    By applying modern monetary theories to China's reality, this book reviews the development practice of China's monetary policy and discusses the transitional goals of China's monetary policy in the new stage of high-quality economic development.

    The book focuses on the formation mechanism of China's inflation from the perspective of learning expectations, adaptive learning and dual labour market structure. It examines the monetary policy objectives of inflation management in an open economy, analyses the causes of China's price fluctuations from a global perspective, and discusses the optimal policy space of the optimal RME exchange rate regime and the synergy between finance and business cycles. The author proposes a policy framework of capital regulation to deal with financial shocks and provides monetary policy options to deal with financial and business cycles. This work helps readers to understand the internal theoretical logic of the target transition of China's monetary policy framework, and points out that China's monetary policy reforms are driven by the economic contradictions it faces at different stages of development.

    The title will provide references for scholars, students and policymakers interested in China's monetary policy, and provide experience and guidance for other developing countries to set their monetary policy targets and promote the transition of the monetary system.

    1. Introduction  2. Literature Review of Research on Monetary Policy  3. Learning Expectations, Volatility and the Persistent Characteristics of China’s Inflation  4. Adaptive Learning and Nonequilibrium Operational Mechanism of China’s Inflation  5. Dual Labor Market Structure and Dynamic Formation Mechanism of China’s Inflation  6. Driven Factors of China’s Inflation  7. Speed of Learning Process and China’s Extended New Phillips Curve  8. International Transmission Mechanism of Prices Fluctuations  9. The Impact of Globalization on China’s Price Level  10. Exchange Rate Stability, Price Stability and the Optimal Flexibility of RMB Exchange Rate Regime  11. Financial Shock, Capital Supervision and Monetary Policy Regulation  12. Differentiation of Economic and Financial Cycles and the Reform of China’s Monetary Policy  13. High-quality Development and the Transition of Monetary Policy Framework

    Biography

    Fan Conglai is professor and doctoral supervisor at Nanjing University, Director of the Yangtze River Delta Economic and Social Development Research Center at Nanjing University, China. His research direction are monetary economics, corporate finance and monetary policy.